Trexquant Investment LP Buys 104,694 Shares of The Cheesecake Factory Incorporated $CAKE

Key Points

• Trexquant Investment LP increased its stake in The Cheesecake Factory by 74.4%, owning about 245,413 shares worth approximately $11.9 million at the end of the first quarter.
• Insider trading revealed significant sales, including Cheesecake Factory President David M. Gordon selling 43,335 shares at an average price of $63.06, reducing his position by 63.85%.
• Analyst ratings for Cheesecake Factory's stock vary, with a consensus average target price of $61.94 and multiple price target adjustments from various firms, including an increase to $75.00 from Oppenheimer.

Trexquant Investment LP increased its position in The Cheesecake Factory Incorporated (NASDAQ:CAKE - Free Report) by 74.4% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 245,413 shares of the restaurant operator's stock after purchasing an additional 104,694 shares during the quarter. Trexquant Investment LP owned approximately 0.50% of Cheesecake Factory worth $11,942,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in CAKE. Wellington Management Group LLP increased its position in Cheesecake Factory by 156.7% in the first quarter. Wellington Management Group LLP now owns 3,045,705 shares of the restaurant operator's stock worth $148,204,000 after purchasing an additional 1,859,194 shares during the period. Westwood Holdings Group Inc. acquired a new stake in Cheesecake Factory in the first quarter worth about $75,795,000. Invesco Ltd. grew its position in shares of Cheesecake Factory by 83.5% during the 1st quarter. Invesco Ltd. now owns 2,591,205 shares of the restaurant operator's stock worth $126,088,000 after buying an additional 1,178,722 shares during the period. Victory Capital Management Inc. grew its position in shares of Cheesecake Factory by 64.1% during the 1st quarter. Victory Capital Management Inc. now owns 1,766,131 shares of the restaurant operator's stock worth $85,940,000 after buying an additional 689,784 shares during the period. Finally, Junto Capital Management LP acquired a new position in shares of Cheesecake Factory during the 4th quarter worth about $21,827,000. 94.48% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Cheesecake Factory

In other news, Director Alexander L. Cappello sold 12,388 shares of the company's stock in a transaction that occurred on Thursday, July 31st. The stock was sold at an average price of $65.88, for a total transaction of $816,121.44. Following the sale, the director owned 6,806 shares in the company, valued at $448,379.28. This represents a 64.54% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Scarlett May sold 18,800 shares of the company's stock in a transaction that occurred on Monday, June 9th. The stock was sold at an average price of $58.82, for a total value of $1,105,816.00. Following the sale, the executive vice president owned 22,872 shares in the company, valued at approximately $1,345,331.04. This represents a 45.11% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 74,523 shares of company stock worth $4,654,643. Corporate insiders own 8.10% of the company's stock.

Wall Street Analyst Weigh In

CAKE has been the subject of several analyst reports. Piper Sandler boosted their target price on Cheesecake Factory from $54.00 to $62.00 and gave the stock a "neutral" rating in a research report on Monday, August 4th. Wells Fargo & Company boosted their target price on Cheesecake Factory from $60.00 to $65.00 and gave the stock an "equal weight" rating in a research report on Wednesday, July 30th. UBS Group boosted their target price on Cheesecake Factory from $45.00 to $50.00 and gave the stock a "sell" rating in a research report on Friday, July 18th. Morgan Stanley boosted their target price on Cheesecake Factory from $45.00 to $47.00 and gave the stock an "underweight" rating in a research report on Thursday, July 31st. Finally, Oppenheimer boosted their target price on Cheesecake Factory from $65.00 to $75.00 and gave the stock an "outperform" rating in a research report on Friday, July 11th. Seven equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $61.94.

Cheesecake Factory Stock Down 0.9%

NASDAQ CAKE traded down $0.58 during trading on Friday, hitting $61.46. The stock had a trading volume of 812,183 shares, compared to its average volume of 1,301,204. The company has a market capitalization of $3.06 billion, a PE ratio of 18.91, a P/E/G ratio of 1.46 and a beta of 1.10. The company's 50-day moving average price is $63.09 and its two-hundred day moving average price is $55.65. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.42 and a current ratio of 0.51. The Cheesecake Factory Incorporated has a 12 month low of $35.40 and a 12 month high of $69.70.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last released its earnings results on Tuesday, July 29th. The restaurant operator reported $1.16 EPS for the quarter, beating the consensus estimate of $1.06 by $0.10. The firm had revenue of $955.83 million for the quarter, compared to analysts' expectations of $945.82 million. Cheesecake Factory had a return on equity of 45.92% and a net margin of 4.33%.The business's quarterly revenue was up 5.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.09 EPS. As a group, sell-side analysts forecast that The Cheesecake Factory Incorporated will post 3.71 EPS for the current year.

Cheesecake Factory Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, August 26th. Shareholders of record on Tuesday, August 12th were paid a $0.27 dividend. The ex-dividend date was Tuesday, August 12th. This represents a $1.08 annualized dividend and a yield of 1.8%. Cheesecake Factory's payout ratio is presently 33.23%.

Cheesecake Factory Company Profile

The Cheesecake Factory Incorporated operates and licenses restaurants in the United States and Canada. The company operates bakeries that produce cheesecakes and other baked products for its restaurants, international licensees, third-party bakery customers, external foodservice operators, retailers, and distributors.